Advance Auto Parts (AAP) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Advance Auto Parts despite lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Advance Auto Parts is expected to report quarterly earnings of $0.75 per share, reflecting a significant year-over-year increase of +1975% [3]. - Revenue is projected to be $2 billion, which is a decrease of 6.8% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 5.69% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Advance Auto Parts is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +5.84% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading indicates a likely earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Advance Auto Parts currently holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Advance Auto Parts exceeded the expected earnings of $0.59 per share by delivering $0.69, resulting in a surprise of +16.95% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Conclusion - Advance Auto Parts is viewed as a strong candidate for an earnings beat, but investors should consider other factors influencing stock performance [17].